Exceeding Expectations ENSCO 8503 ENSCO 8503 drilled Tullow s Zaedyus discovery well offshore French Guiana. Tullow encountered 72 metres of net oil pay in two turbidite fans. The objective of the Zaedyus well was to test whether the Jubilee-play that was successfully established in West Africa, was mirrored on the other side of the Atlantic. This discovery therefore opens a new hydrocarbon basin within which several neighboring prospects have been mapped.
Monthly s Bolded rig names and underlined text signify changes in rig status from previous report. Deepwater North & South America (excluding Brazil) - See Definitions and Disclaimers ENSCO DS-3 Drillship, DP3 10000/12000 BP High 480s U.S. Gulf of ENSCO DS-5 Drillship, DP3 10000/12000 Petrobras Mid 430s U.S. Gulf of ENSCO 8500 Semisubmersible DP 8500/10000 Eni/Anadarko Mid 290s U.S. Gulf of ENSCO 8501 Semisubmersible DP 8500/10000 Nexen/Noble Energy Mid 370s U.S. Gulf of ENSCO 8502 Semisubmersible DP 8500/10000 Nexen High 480s U.S. Gulf of Jun. 16 Jul. 16 Aug. 13 Jun. 13 Jun. 13 Plus cost adjustments Eligible for bonus opportunity up to 17%, plus cost adjustments Lump sum payment of $20 million and one-time reimbursable costs of $27 million amortized over primary contract term, which equals approx. $31,000 per day. Plus cost adjustments and four 1-year same-rate options Currently allocated to Noble. For Nexen's allocation of rig time, see U.S. Gulf of on Definitions and Disclaimers page. Mob and upgrade costs are reimbursed by Noble and Nexen at approx. $19,000 per day over primary contract term. Plus cost adjustments and unpriced options Plus approx. $35,000 per day for reimbursable mobilization expenses and upgrades amortized over 2-year term contract. Plus cost adjustments ENSCO 8503 (2) Semisubmersible DP 8500/10000 Tullow/Cobalt High 430s French Guiana Nov. 11 Then estimate 25 day demob at 75% of day rate (i.e. mid 320s). Then 21 days at special Cobalt rate of low 210s for upgrades. Then expect to commence original 2-year term contract with Cobalt in U.S. Gulf of, low 530s, plus reimbursable expenses and upgrades to be amortized over Cobalt's primary contract term of approx. $54,000 per day once term contract commences Brazil ENSCO DS-4 Drillship, DP3 10000/12000 BP Mid 540s Brazil May 16 Plus cost adjustments ENSCO 7500 Semisubmersible DP 8000 ed/sea trials Brazil Oct. 11 Next to Petrobras to May 14, low 320s. Eligible for bonus opportunity up to 5%. Plus mob and upgrade costs to be amortized over contract at approx. $20,000 per day. Plus cost adjustments ENSCO 6001 Semisubmersible - 5700 Petrobras Mid 270s Brazil Jun. 13 Eligible for bonus opportunity up to 15%, plus cost adjustments ENSCO 6002 Semisubmersible - 5700 Petrobras Mid 270s Brazil Jul. 13 Eligible for bonus opportunity up to 15%, plus cost adjustments ENSCO 6003 Semisubmersible - 5700 Petrobras High 310s Brazil Jan. 17 Planned shipyard work in 3Q 11 for approx. 50 days. Eligible for bonus opportunity up to 15%, plus cost adjustments ENSCO 6004 Semisubmersible - 5700 Petrobras High 310s Brazil Oct. 16 Eligible for bonus opportunity up to 15%, plus cost adjustments Europe & Mediterranean ENSCO 5006 Semisubmersible - Conv Bingo 8,000 Middle East & Africa ENSCO DS-1 Drillship - DP Gusto 10,000 ENSCO DS-2 Drillship - DP Gusto 10,000 ENSCO 5001 Semisubmersible - Conv Sonat 6200/7500 Noble Energy -------- Israel Jan. 12 Zero rate for all of 3Q due to unplanned downtime. Addressing downtime issues with customer. Currently expect to return to full rate (mid 270s) late Oct. 11. Plus cost adjustments and five 1-well same price options 6000/10000 TOTAL Mid 190s Angola Mar. 15 Rate increases mid Dec. 11, low 350s. Plus options and cost adjustments. Planned shipyard upgrade and inspection 3Q 2012 for approx. 90 days at zero rate. Eligible for bonus opportunity up to 7% to Dec. 11 and up to 5% thereafter 6000/10000 TOTAL Mid 460s Angola Jul. 13 Eligible for bonus opportunity up to 5%, plus cost adjustments 5000/6500 Shipyard Angola Sep. 11 Next to Maersk mid Sep.11 to Mar. 12, mid 270s. Plus one 1-well same price option. Then to PetroSA in South Africa to Mar. 14, mid 270s. Plus two 1-well options, low 320s Page 1 of 6
Monthly s Bolded rig names and underlined text signify changes in rig status from previous report. Deepwater Asia & Pacific Rim ENSCO 8504 Semisubmersible DP 8500/10000 TOTAL Mid 420s Brunei Mar. 12 Plus options. Mob and upgrade costs amortized over contract at approx. $94,000 per day Under Construction - uncontracted ENSCO DS-6 Drillship, DP3 10000/12000 Under construction South Korea Dec.11 ENSCO DS-7 Drillship, DP3 10000/12000 Under construction South Korea 2H13 ENSCO 8505 Semisubmersible DP 8500/10000 Under construction Singapore 1Q12 ENSCO 8506 Semisubmersible DP 8500/10000 Under construction Singapore 2H12 (1) For rigs that may be modified to drill in deeper water depths, both the currently outfitted and maximum upgrade capabilities are shown. (2) While ENSCO 8503 has earned a sublet day rate since its successful completion of acceptance testing, the original two-year contract has not yet commenced. Therefore, mobilization from the shipyard and other related reimbursements are not yet being recognized in revenue. Page 2 of 6
Midwater Brazil ENSCO 5000 Semisubmersible - Conv Neptune Pentagon ENSCO 5002 Semisubmersible - Conv Aker H-3 ENSCO 5004 Semisubmersible - Conv F & G Enhanced Pacesetter ENSCO 5005 Semisubmersible - Conv F & G Enhanced Pacesetter ENSCO 6000 Semisubmersible - DP Amethyst Middle East & Africa ENSCO 5003 Semisubmersible - Conv Aker H-3 2300/2650 Petrobras Low 240s Brazil Jul. 13 Eligible for bonus opportunity up to 15%, plus cost adjustments 1000 OGX Mid 260s Brazil Nov. 13 Rate changes Nov. 11 to low 200s. Planned shipyard inspection mid Dec. 11 for approx. 70 days. Then rate changes Nov. 12 to low 220s 1500 OGX Mid 260s Brazil Nov. 13 Rate changes Nov. 11 to low 220s and Nov. 12 to mid 230s 1500/1700 Petrobras Mid 230s Brazil Apr. 13 Eligible for bonus opportunity up to 10%, plus cost adjustments 3400/4000 Petrobras Low 150s Brazil Feb. 12 Currently outfitted for workover activity. Eligible for bonus opportunity up to 18%, plus cost adjustments 1000 SOCO Mid 180s Congo Jan. 12 Plus one 1-well same rate option Page 3 of 6
Depth' Jackups North & South America (excluding Brazil) U.S. Gulf of - See Definitions and Disclaimers ENSCO 59 F&G 300 Cold stacked Gulf of ENSCO 68 MLT 84-CE 400 Chevron Low 100s Gulf of Jan. 12 Day rate does not include certain extra reimbursable costs ENSCO 69 MLT 84-Slot 300 Cold stacked Gulf of ENSCO 75 MLT Super 116-C 400 Apache Low 100s Gulf of Oct. 11 ENSCO 81 MLT 116-C 350 Cimarex Low 80s Gulf of Oct. 11 ENSCO 82 MLT 116-C 300 Chevron High 70s Gulf of Jan. 12 Day rate does not include certain extra reimbursable costs ENSCO 86 MLT 82 SD-C 250 Apache Mid 60s Gulf of Jan. 12 ----------------------------------------------------------------------- ENSCO 87 MLT 116-C 350 Apache Low 80s Gulf of Oct. 11 ENSCO 90 MLT 82 SD-C 250 Arena Energy High 50s Gulf of Nov.11 Rate increases mid Sep. 11, low 60s ENSCO 99 MLT 82 SD-C 250 Available Gulf of Pride Wisconsin MLT-Slot 300 Cold stacked Gulf of ENSCO 83 MLT 82 SD-C 250 Pemex Low 110s Nov. 12 Plus cost adjustments ENSCO 89 MLT 82 SD-C 250 Pemex High 70s Mar. 12 Rates adjust to global index rate every 3 months (next Nov. 11) ENSCO 93 MLT 82 SD-C 250 Pemex High 80s Mar. 12 Rates adjust to global index rate every 3 months (next Oct. 11) ENSCO 98 MLT 82 SD-C 250 Pemex Low 110s Apr. 12 Plus cost adjustments Europe & Mediterranean North Sea ENSCO 70 Hitachi K1032N 250 PA Resources High 80s Denmark Oct. 11 Next to Tullow to Feb. 12, low 90s. Then to RWE Dea to Dec. 12, high 80s. Plus five 1-well unpriced options ENSCO 71 Hitachi K1032N 225 Maersk High 80s Denmark Mar. 12 Plus three 1-year options at escalating day rates ENSCO 72 Hitachi K1025N 225 Maersk High 80s Denmark Jun. 12 Plus three 1-year options at escalating day rates ENSCO 80 MLT 116-CE 225 Wintershall Low 90s UK Feb. 12 Plus one 1-well unpriced option deferred to after EOG. Then to Dana to Apr. 12, low 100s. Then to Perenco to Jul. 12, mid 90s, plus one 1-well same rate option. Then to EOG to Feb. 13, high 90s, plus one 2-well unpriced option ENSCO 92 MLT 116-C 225 E.ON Low 100s UK Oct. 11 Next to Ithaca to Dec. 11, low 100s. Then to RWE Dea to Sep. 12, high 80s. Plus three 1-well unpriced options ENSCO 100 MLT 150-88-C 350 E.ON Mid 130s UK Feb. 12 Plus three 1-well unpriced options ENSCO 101 KFELS MOD V-A 400 Maersk Low 170s UK Feb. 12 Plus cost adjustments and one unpriced option ENSCO 102 KFELS MOD V-A 400 ConocoPhillips Low 200s UK Jun. 16 Rate firm for 8 wells (est. 3 years) thereafter at mutually agreed rate. Plus unpriced options Mediterranean ENSCO 85 MLT 116-C 300 PA Resources Mid 90s Tunisia Oct.11 Page 4 of 6
Depth' Jackups Middle East & Africa Middle East ENSCO 54 F&G L-780 Mod II-C 300 ADOC/Bunduq High 50s UAE Jun. 12 Rate increases Feb. 12 to high 60s. Plus cost adjustments and well-to-well unpriced options ENSCO 58 F&G 250 Saudi Aramco Mid 60s KSA Dec. 13 Plus one 1-year same rate option ENSCO 76 MLT Super 116-C 350 Saudi Aramco Low 100s Saudi Arabia Jun. 14 Planned shipyard upgrade early Oct. 11 for approx. 40 days at zero rate. Plus one 1-year option, high 150s ENSCO 84 MLT 82 SD-C 250 ed/shipyard Bahrain Oct. 11 Next to Saudi Aramco to Oct. 14, low 60s. Planned shipyard upgrade mid 2012 for approx. 80 days at zero rate. Plus one 1-year option, mid 70s ENSCO 88 MLT 82 SD-C 250 Ras Gas Mid 60s Qatar Mar. 12 Plus multiple options at escalating rates ENSCO 91 Hitachi 270 Saudi Aramco High 60s KSA Jul. 14 Planned shipyard upgrade early Mar. 12 for approx. 90 days at zero rate. Plus one 1-year option, mid 90s ENSCO 94 Hitachi 250-C 250 Ras Gas Mid 60s Qatar Jan. 13 Plus multiple options at escalating rates ENSCO 96 Hitachi 250-C 250 ed/shipyard Bahrain Oct. 11 Next to Saudi Aramco to Oct. 14, low 60s. Planned shipyard upgrade mid 2012 for approx. 80 days at zero rate. Plus one 1-year option, mid 70s ENSCO 97 MLT 82 SD-C 250 ed/shipyard Bahrain Oct. 11 Next to Saudi Aramco to Oct. 14, low 60s. Planned shipyard upgrade mid 2012 for approx. 80 days at zero rate. Plus one 1-year option, mid 70s Pride Hawaii Levingston 300 Cold stacked Bahrain Pride Pennsylvania MLT 300 Cold stacked Bahrain Africa ENSCO 61 Levingston 300 Perenco High 80s Cameroon Oct. 11 Plus two 1-well same rate options Asia & Pacific Rim Southeast Asia / Australia ENSCO 52 F&G L-780 Mod II-C 300 Petronas Carigali Mid 70s Malaysia Apr. 13 Planned shipyard inspection approx. 10 days in Oct. 11. Plus one 1-year unpriced option ENSCO 53 F&G L-780 Mod II-C 300 Murphy Mid 70s Malaysia Sep. 11 Next expect to work to Dec. 11, high 70s. Then expect to work to Mar. 12, low 80s ENSCO 56 F&G L-780 Mod II-C 300 Pertamina Mid 70s Indonesia Apr. 13 Plus one 6-month unpriced option ENSCO 67 MLT 84-CE 400 Pertamina Low 100s Indonesia Jan. 13 Plus one 8-month unpriced option ENSCO 104 KFELS MOD V-B 400 ed/shipyard ------------ Singapore Nov. 11 Next to Apache in Australia to Nov. 12, mid 140s. Upgrades amortized over Apache's 1-year term contract of approx. $3,000 per day. Plus one 1-year unpriced option ENSCO 105 KFELS MOD V-B 400 Talisman Mid 120s Malaysia Aug. 12 Two 1-year unpriced options. Upgrades amortized over Talisman's primary contract term of approx. $6,000 per day ENSCO 106 KFELS MOD V-B 400 Newfield Low 120s Malaysia Oct. 12 Upgrades amortized over Newfield's remaining contract term of approx. $4,000 per day ENSCO 107 KFELS MOD V-B 400 Premier Oil Low 110s Vietnam Jan. 12 Plus five 1-well options at index rate ENSCO 108 KFELS MOD V-B 400 TOTAL High 120s Brunei Jan. 12 Next planned shipyard inspection for approx. 2 weeks ENSCO 109 KFELS MOD V- Super B 350 Apache Low 150s Australia Sep. 11 Next move to standby location to Oct. 11, mid 80s. Then mob to PTTEP for work to Mar. 12, mid 160s Under Construction - uncontracted TBD 1 KFELS Super A 400 Under construction Singapore 2Q13 TBD 2 KFELS Super A 400 Under construction Singapore 4Q13 Page 5 of 6
Rig Customer/ Status Other Deepwater Drilling Management Kizomba Deepwater TLP Drilling Rig Thunderhorse Deepwater Semisubmersible 5000 ExxonMobil Mid 70s Angola Apr. 15 6000 BP Mid 80s U.S. Gulf of Jan. 12 Plus five 1-year unpriced options Barge Rig ENSCO I Barge Rig Cold stacked Singapore Definitions and Disclaimers Definition. The day rates reflected in this are the operating day rates charged to customers, which may include estimated contractual adjustments for changes in operating costs and/or reimbursable cost adjustments for ongoing expenses such as crew, catering, insurance and taxes. The day rates, however, do not include certain types of non-recurring revenues such as lump sum mobilization payments, revenues earned during mobilizations, revenues associated with contract preparation and other non-recurring reimbursable items such as mobilizations and capital enhancements, and the impact of the fair market value adjustments to Pride s drilling contracts in place on the 31 May 2011 acquisition date. Routine and non-routine downtime may reduce the actual revenues recognized during the contract term. Additionally, the Company occasionally negotiates special rates with customers as noted in the comments that reduce revenues recognized during the contract term. Rig Names. Upon completion of the merger with Pride International, Inc., we intend to rename Pride s fleet in accordance with our naming convention. We are in the process of completing these name changes, some of which may not be completed for some time. For purposes ENSCO DS-1 of our Fleet Pride Status Africa Report, we are using ENSCO the new 6000 names Pride even South when America the name change ENSCO has not 5002 been completed. Pride Sea Explorer Below is a legend ENSCO showing 61 the name changes. Pride Cabinda ENSCO DS-2 Pride Angola ENSCO 6001 Pride Carlos Walter ENSCO 5003 Pride South Seas ENSCO 91 Pride Montana Legend ENSCO DS-3 of Ensco Deep rig names Ocean Ascension to Pride International ENSCO rig 6002 names Pride Brazil ENSCO 5004 Pride Venezuela Pride Hawaii Pride Hawaii ENSCO DS-4 Deep Ocean Clarion ENSCO 6003 Pride Rio de Janeiro ENSCO 5005 Pride South Atlantic Pride Pennsylvania Pride Pennsylvania ENSCO DS-5 Deep Ocean Mendocino ENSCO 6004 Pride Portland ENSCO 5006 Pride North America Pride Wisconsin Pride Wisconsin ENSCO DS-6 Deep Ocean Molokai ENSCO 5000 Pride ENSCO 58 Pride North Dakota ENSCO DS-7 Deep Ocean Marquesas ENSCO 5001 Pride South Pacific ENSCO 59 Pride Tennessee Forward Looking Statement. Statements contained in this that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forwardlooking statements include words or phrases such as anticipate, believe, estimate, expect, intend, plan, project, could, may, might, should, will and similar words and specifically include statements involving future rig dayrates; cost adjustments; utilization; estimated rig availability; contract duration, status, terms and other contract commitments; customers; rig enhancement projects; new rig commitments; the expected period of time and number of rigs that will be in a shipyard for repairs, maintenance, enhancement or construction; and scheduled delivery dates for new rigs. Such statements are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including the continued impact of the Macondo well incident; governmental regulatory, legislative and permitting requirements affecting drilling operations; changes in worldwide rig supply and demand, competition and technology; future levels of offshore drilling activity; downtime and other risks associated with offshore rig operations, relocations, severe weather or hurricanes; possible cancellation or suspension of drilling contracts as a result of mechanical difficulties, performance or other reasons; risks inherent to shipyard rig construction, repair, maintenance or enhancement; actual contract commencement dates; environmental or other liabilities, risks or losses; our ability to attract and retain skilled personnel on commercially reasonable terms; governmental action, civil unrest and political and economic uncertainties; terrorism, piracy and military action; and the outcome of litigation, legal proceedings, investigations or other claims or contract disputes. In addition to the numerous factors described above, you should also carefully read and consider Item 1A. Risk Factors in Part I and Item 7. Management s Discussion and Analysis of Financial Condition and Results of Operations in Part II of our most recent annual report on Form 10-K, as updated in our subsequent quarterly reports on Form 10-Q, which are available on the SEC s website at www.sec.gov or on the Investor Relations section of our website at www.enscoplc.com. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward looking statements, except as required by law. U.S. Gulf of. Certain Ensco rigs in the U.S. Gulf of have been and may be further affected by the regulatory developments and other actions that have or may be imposed by the U.S. Department of the Interior. Ensco rig utilization and day rates have been negatively influenced due to regulatory requirements and delays in our customers ability to secure drilling and associated permits. Current or future NTLs or other directives, legislation or regulations may further impact our customers' ability to obtain permits and commence or continue deep- or shallow-water operations in the U.S. Gulf of. We continue to work with our customers on mutually agreeable contingency plans for our deepwater rigs in the U.S. Gulf of. In certain cases, we have negotiated reduced day rates with existing customers and/or sublet agreements with other customers in the U.S. Gulf of or elsewhere. Ensco has rejected all force majeure notices received since the Macondo well incident as invalid under the terms of the applicable drilling contracts. During mid-december 2010, Ensco received a force majeure notice from Nexen regarding ENSCO 8501. Following delivery of the force majeure notice, Nexen only paid the $280,000 force majeure rate (75% of the mid-$370,000 invoiced applicable day rate at the time) under recent invoices. Ensco, in turn, notified Nexen that it is in default, which Nexen has denied. Ensco has commenced litigation to resolve the dispute. The full impact of the government s actions and the regulations discussed in this note and potential new regulatory, legislative or permitting requirements has not yet been determined, but could have a further material adverse effect upon our results of operations. Page 6 of 6